Tennant is increasing its investment in robotic floor cleaning equipment, essentially an industrial Roomba, as warehouses and logistics facilities seek increased efficiency with fewer employees.
The Eden Prairie-based company is already working with San Diego company Brain Corporation to develop autonomous mobile robot vacuums. The company announced Thursday that it will invest an additional $32 million in Brain and that Chief Financial Officer Faye West will join its board of directors.
“This partnership builds on Brain Corporation's position as a pioneer in AI and automation as applied to cleaning equipment, as well as innovation. “This will strengthen our efforts in this area.”
Brain CEO David Ping said the automated machines would provide “vital support” to companies facing talent retention challenges.
Under a partnership that began in 2017, the two companies have developed three floor vacuums that can be driven by an operator or work together in autonomous mode. Brain develops artificial intelligence software that enables autonomous mode.
In January, Thomas Hayes, an industrial company analyst at CL King & Associates, was impressed by a visit to Tennant to see its existing AMR model. “In 2024, we expect the biggest trends in warehouse automation to be centered around efficiency, service quality, and employee satisfaction standards,” Hayes said in a research note.
In Q2, Tennant will introduce the X4 ROVR, a new purpose-built AMR that addresses all of these trends. The X4 ROVR has excellent obstacle detection and maneuverability for use in tight spaces. The new model requires less human assistance and is more efficient.
Tennant has sold $200 million worth of robot vacuums since 2019, but that's still a small percentage of total sales. Tennant's total revenue in 2023 was up 14% to his $1.2 billion.
The growing field of autonomous cleaning devices is competing with companies like Brooklyn Park's Nilfisk, which also develops robots.
Under the new agreement, Brain will develop AI technology exclusively for use by tenants in their floor cleaning spaces.
.
Tennant on Thursday reported fourth-quarter profit and sales that beat expectations.
“As we enter 2024, our strategic focus is on our new corporate strategy,” Huml said in the earnings call. “We have already begun implementing concrete growth initiatives in the areas of new product innovation, expanding our go-to-market strategy and disciplined pricing.”
As part of its growth strategy, the development of new self-driving products is being accelerated.
